Related Articles

States set their own sales taxes on many items, including the base retail sales tax rate and additional taxes on gasoline, alcohol and cigarettes. Rates are set by a state's legislature and often change every year. A basic understanding of how various states' sales taxes compare helps identify what retail items are best purchased outside one's home jurisdiction or via the Internet. State sales taxes are imposed on top of any federal sales tax and taxes for specific items are imposed on top of a state's base sales tax rate.

Base State Retail Sales Tax

Base retail sales tax is set at a certain number of cents per every dollar spent in a retail transaction, and the rates vary widely. Some states have no base retail sales tax at all. These states are Alaska, Delaware, Montana, Hew Hampshire and Oregon. Sales taxes between 1 and 5 cents on the dollar are the most numerous. These states are Alabama, Colorado, Georgia, Hawaii, Louisiana, Maine, Missouri, New York, North Dakota, Oklahoma, South Dakota, Virginia, Wisconsin and Wyoming. States with retail sales taxes between 5 1/2 and 8 cents on the dollar are Arizona, Arkansas, Connecticut, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Washington, West Virginia and the District of Columbia. Only California as a base sales tax above 8 cents per dollar.

Additional County-Imposed Sales Tax

Some state legislatures allow counties and municipalities to assess sales taxes on top of any imposed state wide. In Alabama, according to the Alabama Department of Revenue, counties may assess an additional 8 cents per dollar. In Arizona pursuant to Arizona Administrative Code Rule R15-5-2202, the sales tax is actually a TFT, or Transaction Privilege Tax, which is a type of gross receipts tax--a tax levied on the gross receipts of the vendors. According to the Arizona Department of Revenue, counties and municipalities may themselves assess an additional 6 percent of the total sale. California's cities and counties may levy an additional 2 1/2 percent for a total sales tax rate of 10.75 percent. Florida counties are allowed by law to assess an additional 1 1/2 percent on top of the state base tax. Illinois counties may assess additional sales taxes, the total not to exceed 11.5 percent. Missouri counties and municipalities may charge to a total (including the state 4.225 percent) of 9.1 percent. New York counties assess additional taxes of between 3 percent and 4 3/4 percent. In Texas an additional 2 percent is permitted, and may be assessed by counties, municipalities, transit authorities and special purpose districts.

Gasoline

Gasoline taxes are imposed on top of the state's base sales tax rate, the state's gasoline tax rate is an additional amount per gallon paid by the purchaser of gasoline. Only Alaska's gasoline tax is below 10 cents per gallon. States whose gasoline sales tax is between 10 cents and 20 cents per gallon are Arizona, Georgia, Louisiana, Mississippi, Missouri, New Hampshire, New Jersey, New Mexico, Oklahoma, South Carolina, Texas, Virginia and Wyoming. States with gasoline sales taxes between 20 cents and 30 cents per gallon are Alabama, Arkansas, Colorado, Delaware, Idaho, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Minnesota, Montana, Nebraska, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Utah, Vermont and the District of Columbia. Gasoline taxes between 30 cents and 40 cents per gallon are imposed by Florida, Illinois, Indiana, Maine, Michigan, Nevada, North Carolina, Pennsylvania, Rhode Island, Washington, West Virginia and Wisconsin. Gas taxes above 40 cents per gallon are imposed by California, Connecticut, Hawaii and New York.

Tobacco

Like gasoline, tobacco taxes are imposed on top of a state's base sales tax rate. States imposing tobacco taxes on cigarettes of less than $1 per pack of 20 are Alabama, California, Colorado, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, South Carolina (who has the lowest tax at seven cents), Tennessee, Utah, Virginia, West Virginia and Wyoming. States with tobacco taxes between one and two dollars are Alaska, Arizona, Arkansas, Delaware, Florida, Iowa, Maine, Maryland, Michigan, Minnesota, Montana, New Hampshire, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota and Texas. States with taxes above $2 per pack of 20 are Connecticut, Hawaii, Massachusetts, New Jersey, New York, Rhode Island, Vermont, Washington, Wisconsin and the District of Columbia.

Alcohol

Taxes on alcohol are actually broken down into three categories, liquor, including spirits, beer and wine. Each substance is taxed per gallon. States imposing taxes of $5 or less per gallon of spirits are Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Indiana, Kansas, Louisiana, Maryland, Massachusetts, Missouri, Nebraska, Nevada, North Dakota, Rhode Island, South Dakota, Tennessee, Texas, West Virginia, Wisconsin and the District of Columbia. States with taxes per gallon between $5 and $10 per gallon are Delaware, Florida, Hawaii, Illinois, Kentucky, Maine, Mississippi, Montana, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania and South Carolina. Taxes of between $10 and $20 per gallon are imposed by Alabama, Alaska, Idaho, Iowa, Michigan, North Carolina and Utah. States with a tax of more than $20 per gallon are Oregon, Virginia and Washington.

References (3)

Resources (1)

About the Author

An attorney for more than 18 years, Jennifer Williams has served the Florida Judiciary as supervising attorney for research and drafting, and as appointed special master. Williams has a Bachelor of Arts in communications from Jacksonville University, law degree from NSU's Shepard-Broad Law Center and certificates in environmental law and Native American rights from Tulsa University Law.